Jan 10, 2019

Tech Companies Initiate Apprenticeships in Very Tight Labor Market

Desperate times spark desperate measures (like actually investing in people rather than assuming they will come to you fully trained.).

And at a time when tech is under attack on a variety of fronts, helping others get ahead - beyond the graduates of Ivy League universities, Stanford and MIT - is a smart move. JL

Cat Zakrzewski reports in the Washington Post:

A widespread industry effort (is under way) to expand apprenticeships training workers
in digital skills such as cybersecurity or software engineering in an
effort to prepare them for careers at technology companies. “This industry has not traditionally relied on apprenticeships as a talent solution.” (But) efforts to crack down
on high-skilled worker visas have stoked fears about recruiting and
retaining top engineering talent from around the world in Silicon
Valley. It could also be a politically savvy solution in the long term. Apprenticeships enjoy wide bipartisan support.IBM chief executive Ginni Rometty took the stage at CES to unveil a widespread industry effort to expand apprenticeships training workers in digital skills such as cybersecurity or software engineering in an effort to prepare them for careers at technology companies.
Seventeen companies, including IBM, Ford, Canon, Sprint, Postmates and Bosch, have committed to expand apprenticeships to thousands of workers across 20 states to help fill a shortage of trained tech talent. IBM is seen as a leader in the coalition after launching its own apprenticeship program more than a year ago, and Rometty will say the company is doubling those apprenticeships to train between 400 and 450 workers per year, according to a preview provided to The Technology 202.
“This industry has not traditionally relied on apprenticeships as a talent solution,” said Jennifer Taylor, vice president of jobs at the Consumer Technology Association, which is leading the coalition of companies. Such programs have been traditionally limited to sectors like manufacturing or other blue-collar trades.
The initiative could mark a rare area of consensus for Silicon Valley and the Trump administration on labor issues.Trump's stances on immigration and efforts to crack down on high-skilled worker visas have stoked fears about recruiting and retaining top engineering talent from around the world in Silicon Valley. Trump has also slammed technology companies such as Apple for outsourcing the production of its products to China as he pushes his agenda to bring manufacturing jobs back to the United States.
It could also be a politically savvy solution in the long term. Apprenticeships enjoy wide bipartisan support. And after starring for more than a decade in “The Apprentice,” Trump has been a key supporter of such programs in office, too. He signed an executive order in 2017 expanding apprenticeships. Politico reported at the time that the order shifted more power to private industry to run apprenticeship programs, while at the same time increasing grants for such positions, from $90 million to close to $200 million.
The tech industry push seems poised to benefit from government money. IBM already has 15 different kinds of apprenticeships registered with the Labor Department, a progress that allows companies to gain funding through grants or tax credits for the programs. Other companies in the coalition are just starting to go through the process to offer these kinds of apprenticeships.
The push for retraining workers comes at the same time as companies invest heavily in technologies such as artificial intelligence, which could eventually upend a wide range of jobs from truck drivers to radiologists. In the future, technology companies could face greater pressure to retrain the workers they’re displacing, especially as backlash mounts against the industry.
Darrell West, the author of “The Future of Work: Robots, AI, and Automation,” told me in an email that apprenticeships are “a great way to retrain workers losing jobs through automation.”
“They provide concrete job skills and connections to new companies that are invaluable in job searches,” he said. “Businesses know they are getting well-trained and reliable employees through these programs.”
With apprenticeship programs, technology companies can bring in recent high school or community college graduates, as well as more experienced professionals who are seeking to shift careers. IBM’s apprentices have ranged in age from 18 to 59, and they have included a firefighter and veterans. The workers learn new skills while earning a paycheck, avoiding the hefty debt that often comes with enrolling in college. The programs generally last about a year, and they intend to prepare the apprentices for traditional full-time employment at the company.
Another potential benefit to Silicon Valley: Attracting more diverse workers. The technology industry is facing backlash for its lack of diversity, with its largely white and male workforce concentrated on the coasts. IBM has hired 188 apprentices since launching its own initiative a little more than a year ago. Jordan tells me these apprentices hail from Missouri, West Virginia and Minnesota. They range in age from 18 to 59. About 30 percent are underrepresented minorities and 13 percent are veterans.
Taylor, from the CTA, said the organization is hopeful that apprenticeships could have a similar effect at other companies. “It will have a tremendous impact on diversifying the industry,” she said.

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As a Partner and Co-Founder of Predictiv and PredictivAsia, Jon specializes in management performance and organizational effectiveness for both domestic and international clients. He is an editor and author whose works include Invisible Advantage: How Intangilbles are Driving Business Performance.Learn more...